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December 20, 2010


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Okay, so I'm a Cheapskate!

All of what the author described above I have done!

My first car was a older car that was my parents originally. So I guess that's kind of cheating on my part... or is it ;)

The rest 2 thru 5, I fit easily!

I just don't like debt. I don't like being obligated to someone else. It makes my antsy. I am committed to never borrowing again and we will be paying off our mortgage early.

Sounds like me. I did borrow for my first car. Since then I've paid cash. My house was paid off after 4 years . I've lived in the house for 30 years now. I borrowed some money from my parents when I went to college. They forgave the loan as a gift after I finished school. I've never had any credit card debt.

Here's an example where it can be a great idea to borrow other people's money to buy a car.

The last car I bought was a used 1998 Mercedes in 2002, the new car dealer offered me a loan at 7.95% APR which I flatly rejected. They also tried to sell me all kinds of other protections which I also flatly rejected. The finance manager finally said, "This is highly unusual but I guess you know what your doing, Sir", as I bid him farewell and walked out the door. I then went to my Credit Union and obtained a 5 year, 4.75% APR loan and with their check in hand I took delivery of the car. A few months later the Credit Union's rate on used car loans dropped to 4.25% APR and for a $50 fee I was able to refinance it - even better!
During that 5 year period between 2002 and 2006 the annual compound rate of return on my investment portfolio was 9.85%.
Other than a set of tires and normal maintenance the car has been trouble free.

Most of that applies to my Dad. I don't think he's had a car loan since the 1960's. His only other debt I know of has been mortgages on rental properties. He never had a mortgage on his house, hasn't used credit cards or had any other personal debt for as long as I know.

I''ve not been as debt adverse myself but as I get older and more finacially stable I have much less debts. I had credit card debt in my 20's, I had student loans and my first car was financed. Right now our only debts are mortgages and my current cards were paid for with cash.

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